The Ministry of Heavy Industries (MHI) on August 10, 2026, issued notification on PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme.
This is a fresh amendment (on top of two earlier ones — dated 7 Aug 2025 and 27 Mar 2026) to the original scheme notified on 29 Sept 2024, effective from the date it's published in the Gazette.
Key changes:
1. Scheme outlay and duration reaffirmed — ₹11,900 crore total, running 1 April 2024 to 31 March 2028. EMPS-2024 (the earlier two-wheeler scheme that ran April–Sept 2024) remains subsumed into PM E-DRIVE.
2. e-2W (electric two-wheeler) incentive structure updated (Annexure-4, Sl. No. 1):
o Max vehicles supported: 45,79,120
o Incentive: ₹5,000/kWh (capped ₹10,000/vehicle) for FY 2024-25; reduced to ₹2,500/kWh (capped ₹5,000/vehicle) for the period 01.04.2025 to 31.03.2028
o Max ex-factory price to qualify: ₹1.5 lakh
o Total fund support: ₹2,767 crore
o Incentive is capped at the lower of the stated amount or 15% of ex-factory price
3. Outlay allocation confirmed — ₹2,767 crore for e-2Ws, ₹55 crore for admin expenses (with flexibility to move money between admin sub-heads).
4. Fund-limited nature reiterated (Para 46):
o If money runs out before 31 March 2028, that segment/sub-component closes early — no more claims accepted
o e-3W (L5) segment already closed on 26 December 2025, since its sales target was met (this was previously communicated via an Office Memorandum dated 23 Dec 2025)
o No payments after 31 March 2028 (hard terminal date)
o Claim submission deadline: 31 December 2027 — this is the real practical cutoff, giving roughly 3 months' buffer before the scheme's terminal date for processing
The e-2W incentive rate has been halved from FY 2025-26 onward compared to FY 2024-25, the total fund envelope and vehicle cap for e-2Ws are now fixed, and manufacturers/dealers have a firm claim-filing deadline of December 31, 2027.
[Notification No. S.O. 4424(E)]
